Service Level Management Drives Performance Management Revenue Growth to $2.5 Billion in 2005, IDC Says

FRAMINGHAM, MA – AUGUST 15, 2001 – Network performance management products will be the forerunners of the change from network to service management. From 2001 to 2005, IDC believes the transition from network node to IP-service-based management will drive vendor revenues to nearly double from $1.4 billion in 2000 to $2.5 billion in 2005.


"The need for simplistic service delivery and assurance of managed and bundled services continues to increase as networking technologies and service offerings multiply," said Paul Bugala, research analyst for IDC’s Network and Service Management program. "Network performance management, especially service level management, is well positioned to fulfill its role as the mediator between the service provider and its customers."

Service level management is the fastest-growing subsegment of network performance management market. According to IDC, vendor revenue will increase at a 2000-2005 CAGR of 21% to $922 million in 2005. The other subsegment, network traffic management, which includes network protocol analyzers and network probes, is projected to reach $1.6 billion.

IDC’s bulletin Network Performance Management Forecast and Analysis, 2000-2005 (IDC #W25115) provides in-depth analysis of market dynamics, such as the need for performance management of all technologies at the customer site, the emergence of service management, and the fate of the network probe market. It also forecasts vendor revenues from 2000 to 2005 by customer type (enterprise and service provider) in the overall market and the service level management and network traffic management segments.

To purchase this bulletin or for more information, contact Demetra Georgakopoulos at 1-800-343-4952, extension 4496, or email

About IDC

IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 700 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at

IDC is a division of IDG, the world's leading IT media, research and exposition company.


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